Firebirdparts
Best tackle for his weight the old school ever had
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- Sep 13, 2014
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I don't think this is a really smart play for a either, actually. It's terrible for taxable. In a Roth, though, it seems like cutting off the upside is not at all a good idea. how brave are you? If you are brave, in a Roth, you may want to do the opposite. [ I should add here, the ETF's behave in a way that I personally would never do. If they behaved like me, then I might be fine with it. YMMV, people are starting new ETFs all the time.]For all y'all who are way more well-versed in all things covered call: Are CC ETF/ETPs like AIPI (whose distributions appear to be ROC-based, with the potential for some capital gains) suitable for a Roth IRA? Or are they like MLPs in the sense that they're better off in a taxable brokerage account?
My thought behind this is to open a Roth IRA, dump some cash into AIPI and/or other CC-oriented ETF/ETPs, and just let it marinate for the next 20ish years. Then, when I retire...additional tax-free monthly income(?)
The ideal amount of leverage, apart from emotions and fear, is not below 1 for people who are not retired. Some people though are not concerned with the ideal for various reasons.
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